Health insurance is a type of insurance that covers medical expenses incurred on an illnessor injury. These medical expenses include hospitalisation expenses, medicine cost and doctor/physician fees as well.
Health insurance aims to take care of your expenses in a time of medical crisis. To put it simply, the insured pays regular premiums to the insurance provider, and in return, they offer financial support to them.
Why Do You Need Health Insurance?
Never before has it been so important to take care of your health. The Coronavirus outbreak has made that abundantly clear for all of us. However, even before the global pandemic, there were several threats to our health present in the environment, because of which we need to understand what is health insurance. You might lead a healthy lifestyle, but unfortunately, a medical emergency can occur without warning.
In times of a health crisis, the financial burden can become immensely stressful. With the skyrocketing healthcare costs, it can be challenging to pay for them out of your savings. Therefore, it is essential to plan for medical emergencies.
A health insurance plan protects you from these overwhelming medical expenses. When you understand health insurance meaning and invest in a suitable health insurance plan, it ensures that your family is financially untroubled. Make sure you are aware of various tips to consider before buying health insurance.
Benefits of Health Insurance
There are several benefits to investing in a health insurance plan next to understanding health insurance meaning. Following are the benefits of health insurance plans:
Let’s discuss the above health insurance benefits in detail.
1. Optimum Coverage
The principal reason to know what is health insurance and buy it is to create a financial shield for your future. There are several kinds of health insurance plans available to cater to specific requirements. It is crucial to understand your financial needs and choose a suitable policy.
A carefully selected plan will provide optimum coverage, including regular check-up expenses, ambulance expenses, hospitalization charges, alternative treatment, and more. Some policies also offer coverage for treatment at home under medical supervision as a part of domiciliary treatment.
Make sure you understand health insurance meaning in various facets before you choose a plan.
2. Cashless Claim Benefit
To make things easier, most insurance companies offer cashless treatment athospitals. The insurance providers have tie-ups with certain hospitals for such cases. It means that you do not have to pay medical bills directly when you avail of treatment in a network hospital.
The expenses are settled between the hospital and the insurance provider. In the case of an unforeseen medical emergency, cashless treatment can be incredibly helpful.
3. Additional Protection
Most employers provide health insurance for their employees. However, many people find it to be unsuitable to their specific requirements. It may also be affected by a change in employment. A health insurance policy of your choice will put your mind at ease. A plan that is customized to your requirements will offer better security and stability.
Furthermore, several riders can be attached to your existing plan and expand the scope of security. For example, the critical illnesses rider offers protection against life-threatening diseases such as cancer, heart attacks, kidney failure, and more.
4.Tax Benefits
One of the most significant benefits of investing in a health insurance plan is the tax benefits. Many people find it to be a substantial incentive behind opting for health policy. It is so because tax relief is a massive advantage for an individual’s ongoing expenses.
Tax Benefits of Health Insurance
If your annual income falls under the taxable category, health insurance can prove beneficial in more than one way. The government allows tax deductions for specific expenses that will help reduce your taxable income. A health insurance plan comes under the list of expenses eligible for tax deductions.
Under Section 80D of the Income Tax Act, you can claim a tax deduction of up to Rs. 25,000 for the self, spouse, or dependent children. If you have a health plan for your parents of less than 60 years of age, an additional deduction of up to Rs. 25,000 is applicable. In case the parents are above the age of 60, the deduction amount can be increased up to Rs. 50,000.
In case both the taxpayer and the parent are above the age of 60, this section allows a maximum deduction up to Rs. 1 Lakh. There are also taxation reliefs for preventive health check-ups between Rs. 5,000 – Rs. 7,000 for the age brackets mentioned earlier.
You can avail of the tax benefits under Section 80D and Section 80C by adding a critical illness rider with a Max Life term plan, thereby serving as a health insurance plan. You can use an online calculator to pay the premium.
In times of a health crisis, the financial burden can become immensely stressful. With the skyrocketing healthcare costs, it can be challenging to pay for them out of your savings. Therefore, it is essential to plan for medical emergencies.
A health insurance plan protects you from these overwhelming medical expenses. When you understand health insurance meaning and invest in a suitable health insurance plan, it ensures that your family is financially untroubled. Make sure you are aware of various tips to consider before buying health insurance.
Benefits of Health Insurance
There are several benefits to investing in a health insurance plan next to understanding health insurance meaning. Following are the benefits of health insurance plans:
- Optimum Coverage
- Cashless Claim Benefit
- Additional Protection
- Tax Benefits
Let’s discuss the above health insurance benefits in detail.
1. Optimum Coverage
The principal reason to know what is health insurance and buy it is to create a financial shield for your future. There are several kinds of health insurance plans available to cater to specific requirements. It is crucial to understand your financial needs and choose a suitable policy.
A carefully selected plan will provide optimum coverage, including regular check-up expenses, ambulance expenses, hospitalization charges, alternative treatment, and more. Some policies also offer coverage for treatment at home under medical supervision as a part of domiciliary treatment.
Make sure you understand health insurance meaning in various facets before you choose a plan.
2. Cashless Claim Benefit
To make things easier, most insurance companies offer cashless treatment athospitals. The insurance providers have tie-ups with certain hospitals for such cases. It means that you do not have to pay medical bills directly when you avail of treatment in a network hospital.
The expenses are settled between the hospital and the insurance provider. In the case of an unforeseen medical emergency, cashless treatment can be incredibly helpful.
3. Additional Protection
Most employers provide health insurance for their employees. However, many people find it to be unsuitable to their specific requirements. It may also be affected by a change in employment. A health insurance policy of your choice will put your mind at ease. A plan that is customized to your requirements will offer better security and stability.
Furthermore, several riders can be attached to your existing plan and expand the scope of security. For example, the critical illnesses rider offers protection against life-threatening diseases such as cancer, heart attacks, kidney failure, and more.
4.Tax Benefits
One of the most significant benefits of investing in a health insurance plan is the tax benefits. Many people find it to be a substantial incentive behind opting for health policy. It is so because tax relief is a massive advantage for an individual’s ongoing expenses.
Tax Benefits of Health Insurance
If your annual income falls under the taxable category, health insurance can prove beneficial in more than one way. The government allows tax deductions for specific expenses that will help reduce your taxable income. A health insurance plan comes under the list of expenses eligible for tax deductions.
Under Section 80D of the Income Tax Act, you can claim a tax deduction of up to Rs. 25,000 for the self, spouse, or dependent children. If you have a health plan for your parents of less than 60 years of age, an additional deduction of up to Rs. 25,000 is applicable. In case the parents are above the age of 60, the deduction amount can be increased up to Rs. 50,000.
In case both the taxpayer and the parent are above the age of 60, this section allows a maximum deduction up to Rs. 1 Lakh. There are also taxation reliefs for preventive health check-ups between Rs. 5,000 – Rs. 7,000 for the age brackets mentioned earlier.
You can avail of the tax benefits under Section 80D and Section 80C by adding a critical illness rider with a Max Life term plan, thereby serving as a health insurance plan. You can use an online calculator to pay the premium.
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